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Mike has a 50/50 portfolio with securities X and Y. What is the variance of the portfolio? Please use % as the unit when calculating
Mike has a 50/50 portfolio with securities X and Y. What is the variance of the portfolio? Please use % as the unit when calculating the covariance
Probability
Bust: 60%
Normal: (40-22)%
Boom: 22%1
Return X
6%
12%
14%
Return Y
4%
12%
18%
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